Correlation Between Ensign and Accolade
Can any of the company-specific risk be diversified away by investing in both Ensign and Accolade at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Ensign and Accolade into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Ensign Group and Accolade, you can compare the effects of market volatilities on Ensign and Accolade and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Ensign with a short position of Accolade. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ensign and Accolade.
Diversification Opportunities for Ensign and Accolade
Good diversification
The 3 months correlation between Ensign and Accolade is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding The Ensign Group and Accolade in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Accolade and Ensign is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on The Ensign Group are associated (or correlated) with Accolade. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Accolade has no effect on the direction of Ensign i.e., Ensign and Accolade go up and down completely randomly.
Pair Corralation between Ensign and Accolade
Given the investment horizon of 90 days The Ensign Group is expected to under-perform the Accolade. But the stock apears to be less risky and, when comparing its historical volatility, The Ensign Group is 8.5 times less risky than Accolade. The stock trades about -0.02 of its potential returns per unit of risk. The Accolade is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 377.00 in Accolade on November 1, 2024 and sell it today you would earn a total of 311.00 from holding Accolade or generate 82.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Ensign Group vs. Accolade
Performance |
| Timeline |
| Ensign Group |
| Accolade |
Ensign and Accolade Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ensign and Accolade
The main advantage of trading using opposite Ensign and Accolade positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ensign position performs unexpectedly, Accolade can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Accolade will offset losses from the drop in Accolade's long position.| Ensign vs. Enhabit | Ensign vs. Pennant Group | Ensign vs. InnovAge Holding Corp | Ensign vs. National HealthCare |
| Accolade vs. Privia Health Group | Accolade vs. HealthStream | Accolade vs. National Research Corp | Accolade vs. Health Catalyst |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation |